Gap raises forecast; to open 40 stores in India.

Apparel retailer Gap Inc raised its full-year profit forecast, encouraged by strong sales of its lower-priced Old Navy clothes, and said it would open 40 stores in India as part of its strategy to expand in emerging markets.

Gap has been looking to reduce its dependence on the North American market, which generates more than three-quarters of its sales.

Sales of its other key brands - Gap and Banana Republic - have cooled in the region as shoppers cut down on discretionary spending.

Sales in Asia accounted for only 9 percent of Gap's total revenue of $16.1 billion in the year ended February 2014, but are growing fast. The company said in April it expected sales in China to triple in the next three years to $1 billion.

in.reuters.com